Glebe Administration Board’s restructure of investment operations

21. Mr Mark Robinson asked -

Is it correct that the Glebe Administration Board plans to restructure its investment operations?

If so,

1. What changes are planned?
2. What impact will the changes have on the GAB’s ethical investment stance?
3. What consideration led to the decision?
4. What impact are the changes intended to have on the investment performance of the GAB?

To which the President replied -

Yes, the Glebe Administration Board (GAB) has recently commenced a program to restructure its investment operations to more closely reflect that needed by the Diocese over the next five to ten years.

1. The GAB’s funds management structure will be reduced in scope and reshaped so as to offer investment services to only the Diocesan family. In addition the opportunity will be taken to utilise the services of specialist external managers to provide a balance of skills in direct investment and administration
2. There will be no impact on GAB’s ethical investment stance.
3. External influences are -
   1. Consolidation of the funds management industry.
   2. Movement in the value chain away from investment management.
   3. Growth in specialist investment managers at the expense of institutional managers.
   4. The capacity of external providers to offer improved analytical and reporting services.
      
      Internal considerations included -
      1. Reputation and litigation risks.
      2. Unnecessary compliance.
      3. The potential for distraction from the Board’s response to mission.
4. GAB performs reasonably well as an investor and accordingly, investment performance was not a significant influence in the planned changes. Having said that, the new structure creates the opportunity to improve performance through careful mixing of investment styles and through higher levels of market and performance analysis.